Tax Experts Suggest Gradual Income Tariff Imposition on Bitcoin

Feb 28, 2020 at 08:22 // News
Coin Idol
Tax experts in South Korea to adopt low-level  cryptocurrency taxation

Some tax experts in South Korea suggested that they first adopt low-level transaction taxes for the practical application of cryptocurrency taxation, and then gradually switch to applying capital gains tax. In the absence of a cryptocurrency-related bill, it is difficult to track all of the trading profits of investors, so it is reasonable to initially introduce a trading tax that proves only the existence of a transaction.

While the government announced that it would present a taxation plan for cryptocurrency in the toll reform plan to be announced later this year, experts advised that the taxation direction should be the first stage of the transaction toll. It is also proposing to convert taxation into income toll after the government has established an institutional infrastructure for levying..

The Principle of Taxation on Cryptocurrency is Income Tariff

Oh Moon-sung, chairman of the Korean Tax Policy Society, said that profits from cryptocurrency transactions should be taxed with a surplus values tariff. He added that legislation that includes Bitcoin or other digital assets, among the range of capital gains defined in the Income Tax Act, must be made before tariff standards for investors can be prepared.

Kim Yong-min, the head of the tax office of the blockchain association, who was the head of the toll office of the Ministry of Strategy and Finance, also recommended the taxation of surplus values on digital currency transactions. However, he pointed out that it is not easy to calculate all necessary expenses such as acquisition value when cryptocurrency industry law is lacking and tariff infrastructure is insufficient.

Chairman Kim emphasized that the possibility of proving necessary expenses such as the acquisition price of digital assets should be gradually reviewed in order to apply the capital gains tariff in the early stage, starting with levying of transaction toll.

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